QUARREL

12.30.11

Judge: SEC Misled Court

Mario Tama / Getty Images

U.S. District Court Judge Jed Rakoff is stepping up his fight with the Securities and Exchange Commission over its regulation of Wall Street. After accusing the regulator of negotiating a weak settlement with Citigroup, Rakoff said the SEC withheld important information that prevented him from doing his job. The SEC isn’t taking Rakoff's attacks sitting down: the regulator asked the U.S. Court of Appeals to overrule Rakoff's decision by declaring Rakoff to have overstepped his bounds. Rakoff is angry that the SEC allows banks to settle without admitting wrongdoing.